Here's your round-up of the latest insurance updates

AI set to transform the health insurance landscape at UAE

On September 30, 2024, Thumbay Healthcare—the largest network of academic hospitals, clinics, labs, and pharmacies in the United Arab Emirates—hosted the Insurance Meet 2024 in Dubai. As the UAE gets ready for the countrywide mandated health insurance program that is scheduled to go into effect in early 2025, the event brought together representatives from international and local insurance companies as well as government regulators from the Dubai Healthcare Authority. It also acted as a launchpad for crucial training initiatives.

At the conference, Gulf Medical University (GMU) and the American Academy of Professional Coders (AAPC) announced a new course for medical coding and billing professionals. The course's goal is to provide students with the skills they need to meet the ever-growing demands of the healthcare industry.

Dignitaries such as Dr. Thumbay Moideen, Founder President of Thumbay Group, and H.E. Humaid Mohammad Obaid Al Qutami, Former Minister of Health and Education, Dubai, UAE, graced the conference. Their presence showcased the vital importance of advancing the future of healthcare and insurance in the UAE.

New insurance scheme to protect rights of expat workers takes effect on October 6 in Saudi Arabia

A new insurance scheme called "Insurance Product" was introduced by the Insurance Authority and the Ministry of Human Resources and Social Development with the objective of protecting the rights of expatriate workers. The scheme, which came into effect on Sunday, October 6, also minimizes the financial burden that employees would have to bear in the event that employers fail to pay salaries for a predetermined amount of time.?

The scheme will reimburse the dues of expatriate workers in private sector establishments in the case of default by their employers. The insurance product, offered by insurance firms in the Kingdom, pays expatriate employees' dues in the event that the owners of the company default on paying their salaries. The insurance document's terms and benefits, as well as the policies and procedures governing it, will be followed in the implementation of the scheme.

Among these perks could be a ticket for travel in the event that the expatriate employee decides to return home once their employment ends. The introduction of the insurance product fits into the larger picture of efforts to improve the labor market in the Kingdom through laws and policies, protect employee-employer contracts, and make the labor market more efficient and appealing both domestically and globally.

UAE takaful insurer prohibited from signing new motor, health policies

It is not permitted for a Takaful insurer in the UAE to issue or conclude new health and motor insurance contracts. The UAE Central Bank has issued an order that states that this will also apply to renewals of such policies. This is under the Federal Decree Law No. (48) of 2023 Regarding the Regulation of Insurance Activities, specifically Article 33.

However, the insurer is still accountable for any rights and obligations resulting from insurance contracts signed before the prohibition's decision. "This action comes as a result of the insurance company's failure to meet the minimum capital requirement," said the regulator. "The CBUAE has given the insurer a period of six months to remediate the solvency position and comply with its directions in this regard."

"The CBUAE, through its supervisory and regulatory mandates, works to ensure that all insurers, their owners, and staff abide by the UAE laws, regulations, and standards adopted by the CBUAE to safeguard policyholders as well as the integrity of the insurance sector and the UAE financial system."

Reinsurance market participants divided on price movements at Jan. ’25 renewals

Although Fitch Ratings expects reinsurers to maintain their strong profitability in this line of business, reinsurance market players are divided on whether price increases at the important January 1st renewals will be sufficiently robust to appropriately adjust for rising loss patterns in the real estate catastrophe sector.?

The findings of the reinsurance market survey, in which 81 reinsurers, insurers, brokers, and other market players shared their projections for the January 2025 reinsurance renewals, were made public by the global rating agency. More than half of those surveyed expect price hikes from global reinsurers of 1.1 percent; of these, 30% expect increases of more than 5% and 26% expect increases of less than 5%. About two-thirds of respondents expect flat pricing, 12% expect price reductions of less than 5%, and 10% expect price reductions of more than 5%.

Fitch shares the belief of those who expect a decline in pricing. The rating agency has stated in the past that it thinks the cycle has ended and that there will be an abundance of capital in 2025, which will lead to a softer reinsurance market.

Post for Investment, AXA launches Egypt’s first microinsurance company

AXA Egypt and Post for Investment, Egypt Post's investment division, have forged a strategic partnership agreement. The signing ceremony was witnessed by French Ambassador to Egypt Eric Chevallier, Mohamed Farid, Chairperson of the Financial Regulatory Authority (FRA), and Minister of Communications and Information Technology Amr Talaat.

The goal of this partnership is to implement the new Unified Insurance Law by founding Egypt's first microinsurance firm. Thomas Buberl, CEO of AXA Group, and Abdo Alwan, Acting Chairperson of the National Postal Authority, were in attendance.

This strategic alliance supports the state's efforts to improve financial inclusion and abide by the recently passed Unified Insurance Law. The objective is to offer a wide variety of reasonably priced microinsurance products, including individual and group policies, to over 12 million low-income citizens in order to secure their finances. These products will include life, health, livestock, personal accident, and group protection plans. Through a variety of channels, including the vast nationwide network of Egyptian Post branches, microfinance companies, and digital platforms, customers will have simple access to these services.